Jul 05, 2021 (Baystreet.ca via COMTEX) -- For a few months, CEO Elon Musk preoccupied his Twitter /zigman2/quotes/203180645/composite TWTR +0.29% account with posts about bitcoin. Now that his attention is back on Tesla /zigman2/quotes/203558040/composite TSLA +0.33% and its latest Plaid release, the stock may recover.
In the second quarter, Tesla delivered 1,890 Model S/X units and almost 200,000 Model 3/Y vehicles. The 206,421 vehicle production in the period would leave around 5,000 units in inventory. Those deliveries are strong results. The pure-play EV firm continues to widen its lead against the traditional carmakers. For example, General Motors /zigman2/quotes/205226835/composite GM -0.37% still depends on gas-powered vehicles for revenue. It announced billions in spending to position itself in the EV market.
Ford Motor /zigman2/quotes/208911460/composite F +1.12% is similarly late in the game. The company announced an electric F-150, which sent the stock sharply higher. Yet Ford, like GM, will have to spend billions to catch up to Tesla. Tesla has a global distribution and supply chain. It has a supercharger network in all major locations. Its development costs are low because it has a strong demand for the existing line-up of vehicles.
Tesla shares tested the $600 level on at least three occasions in 2021 and bounced from there. Chances are good that the stock will find support on its rising 200-day moving average and trend higher throughout this summer.
The company reports quarterly results later this month.
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